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Need advice on helping friend

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Kevin86475391
Frequent Contributor

Re: Need advice on helping friend

It sounds like you and your friend are both really nice people who want to help those they care about...but to be honest it also sounds like you're both repeating risky financial patterns. He's already had a BK but gotten himself back in $15K of debt by helping his kids. You've already been burned by your sister but are considering going down the road again with your friend.

 

My rule of thumb is to consider any money between friends or family a gift, not a loan. Don't do it unless you can absolutely afford to pay it off yourself and won't mind doing it. Otherwise it can destroy your friendship, wreck your finances, or both.

Message 11 of 14
Anonymous
Not applicable

Re: Need advice on helping friend

U don't need to make him an AU to transfer a balance to ur card. Do understand if he's not able to pay the loan hope ur able to if not u just ****** up ur good credit. Remember no one wanna screw another but if he lost his job or income credit card would be last thing one is worry about paying. Question to urself is u said ur friend own a house if he really want to I'm pretty sure he can pull equity out on house to pay that 15k cc debt

Message 12 of 14
Anonymous
Not applicable

Re: Need advice on helping friend


@Anonymous wrote:

Thank you very much for the tips, I'll definitely check out LendingClub.  I do realize all the responsibilities of making my friend an AU, which is why I'm reaching out for ideas to see if there's a way to accomplish both: help and protect myself.  His spending habits are OK.  He's got adult children whose he's helping, which is the most unpredictable variable here.  If their car breaks down, he "loans" the money to fix it, but of course nevers sees it again. That "loan" now is on his credit card with high APR.   We definitely would have conditions to pay out this credit card, but who knows what the future brings.  I was thinking maybe he could make a coowner of his car or even a house, something like that, until he pays off the card.  Just looking for ideas.  Thank you again!


First of all no one is going to make someone a co owner for their house for a 15k loan unless the house is upside down and if it's upside why would u a lender wanna be on an upside down house?? No benefit at all if he doesn't pay the 15k back. If have equity he can just take out an equity against the house. How bad can one credit be if he have a card with 15k limit?

Message 13 of 14
Anonymous
Not applicable

Re: Need advice on helping friend

Thank you for the tips and recommendations.

Message 14 of 14
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